Podcast ¦ Punk CX: There are five types of loyalty but only two are growing – Interview with Sara Richter of SAP Emarsys

Key Takeaways

1. The Amarsis Customer Loyalty Index (CLI) report identifies five distinct types of customer loyalty: ethical, true, incentivized, silent, and inherited.
2. Ethical loyalty has risen by 53% since 2021, reflecting a growing consumer preference for brands that align with their social and ethical values.
3. True loyalty has increased by 93% since 2021, indicating stronger relationship-building between brands and customers.
4. Incentivized loyalty, which relies on discounts and rewards, has declined, suggesting that consumers expect more meaningful engagements beyond mere transactions.
5. Customers feel undervalued, with 83% expressing that their loyalty is not appreciated by brands.
6. Generational differences are notable, with younger consumers exhibiting varying loyalty characteristics compared to older demographics.
7. Effective customer service and support are critical in cultivating brand loyalty, particularly in how brands manage customer interactions during problematic situations.
8. Personalization must be rooted in a genuine understanding of customer needs and preferences, going beyond surface-level tactics.
9. A holistic approach to customer experience, where all departments prioritise customer engagement, is essential for brands aiming to enhance loyalty.
10. Economic factors, such as the cost of living and supply chain issues, have influenced loyalty trends and consumer behaviour.
11. Successful brands, such as Gibson and Bayern Munich, engage customers creatively beyond the product, focusing on building community and shared experiences.
12. Cultural differences across regions, such as between the UK and the US, affect customer perceptions of loyalty and brand engagement.

Key Statistics

• Ethical loyalty increased by 53% since 2021.
• True loyalty rose by 93% since 2021.
• 83% of consumers feel their loyalty is undervalued by brands.
• Only 39% of consumers in the US express true loyalty compared to 27% in the UK.

Key Discussion Points

1. The evolution of loyalty and the various types that exist.
2. The importance of emotional connection and personalised experiences in fostering true loyalty.
3. How economic conditions impact brand loyalty perceptions and behaviours.
4. The role of customer service in addressing customer needs and driving loyalty.
5. The need for brands to understand customer aspirations and values to build ethical loyalty.
6. Observations regarding generational differences in loyalty preferences and expectations.
7. The significance of integrating customer data across various touchpoints to personalise engagement effectively.
8. The consequences of brands prioritising short-term transactional incentives over meaningful, long-term relationships.
9. The influence of cultural nuances on loyalty trends across different countries.
10. The necessity of adopting a customer-obsessed organisational mindset.
11. Examples of brands that successfully engage customers through innovative, experience-driven approaches.
12. The challenges brands face when attempting to maintain loyalty during periods of economic uncertainty.

Podcast Description
The Punk CX Podcast, hosted by Adrien Swinscope, delves into the world of customer experience and loyalty through candid conversations with industry leaders and innovators. In this episode, Adrien speaks with Sarah Richter, CMO at Amarsis, about the latest findings from the Customer Loyalty Index report. They explore the evolving landscape of customer loyalty, the importance of understanding different loyalty types, and what brands must do to foster lasting relationships with consumers. Tune in for valuable insights on navigating the complexities of customer engagement and the role of technology in enhancing loyalty strategies.